October 2022 — Monthly Performance Report

Dear Ludwigs,

Another month has come and gone and a lot has changed. At a broader level the industry is looking for answers, it’s looking for transparency. Sticking to our normal rhythm, we bring you our latest monthly report.

This report aims to outline the metrics of success for Beethoven X in a fun, simple, and easy-to-understand manner, as well as offer insight and transparency to you, our users. Based on the presentation given during the Monthly Community Town Hall AMA, this report offers users the ability to keep up to date with the more quantitative aspects of the protocol.

In this report we will cover the following topics:

  • Highlights
  • Protocol Performance
  • Top Performing Pools
  • BEETS performance
  • Balances and Metrics

Due to the significant nature of the recent events, where applicable a “subsequent event” section will be added to account for balances at the time of writing. This is to increase transparency around the protocol and treasury balances.

Highlights

October was a good month for our Optimism deployment. We continued to see strong growth in volume, fees and liquidity. These were all taking place on top of our sustainability model being applied on the network.

It was also a key month for governance with a number of key proposals going to vote.

These high points can be best summarized as follows:

  • Crossed $20m TVL on Optimism
  • Sustainable Incentive model
  • Governance

Protocol Performance

Swap Volumes and Fees

This month we saw the impacts of a full month with the new pool factories on Optimism.

To bootstrap these pools the incentives were reactivated, which attracted deeper TVL and facilitated an increase in volume and fees.

There was also work done which saw 1inch integrate the new pools which helped attract additional volume. Aggregator integration remains a work in progress and should see further increases in volume.

*The fees below only detail those from swaps.

Subsequent Events

At the time of writing, November volume for Fantom is >$30m and Optimism >$28m. While the fee collector holds $24k for Fantom and $19k (incl the Balancer portion) on Optimism.

TVL Growth

Over the course of October, the general market saw increases. Key price changes were:

  • Bitcoin appreciated (5.23%)
  • Ethereum appreciated (18.3%)
  • Fantom appreciated (5.49%) and
  • Optimism appreciated (13.9%)

Fantom

TVL on Fantom was up 9.6% for the month. In line with the majority of the DEXs on the network. protocol TVL was down 5.9%.

Optimism

The strong close in September carried on through October. We achieved a growth of 145.83% for the month outperforming all competitors and the network.

Subsequent Events

At the time of writing there has been a significant downturn in asset prices:

  • Bitcoin depreciated (18%)
  • Ethereum depreciated (19.9%)
  • Fantom depreciated (22.7%) and
  • Optimism depreciated (10.5%)

This has impacted TVL where for Fantom it has decreased by 17.9%, while on Optimism the impact has been a decrease of 16.7%

Top Performing Pools

Top performing pools on Fantom

A Late Quartet (FTM/ ETH/ BTC/ USDC at 25% each) continues to be our highest fee earner, with Fantom of the Opera (FTM 70/ 30 USDC) coming in second. These two pools accounted for over 25% of the fees for the month.

Top performing pools on Optimism

Lido Shuffle (interest bearing (ib) wETH/ wstETH) brought in the largest amount of fees for October, followed by Happy Road (ETH/ OP/ USDC) and Yellow Submarine (wstETH/ ib USD/ ib BTC). These fees are limited to swap fees only.

BEETS Performance

BEETs opened the month at $0.039, decreased to a low of $0.034 before having a slight recovery and closing the month at $0.038.

This translated into a 3.2% decrease in price over the month, stronger than the results of other Fantom natives DEXs.

The increase in Curve’s market cap is primarily driven by a $160m (33%) increase that took place on October 18. This increase was not driven by change in token price.

Balances and Metrics

Financial Metrics

Swap Fee Flow

Below you can see a breakdown of how swap fees were generated and allocated as part of the monthly protocol fee distribution. It also includes a reconciliation of the Treasury Balance Sheet.

This month represents the updated swap fee distribution, where 70% of fees goes to the treasury DAO.

Assets held by Treasury

The table below shows the Treasury balances at the end of the month.

The growth in month-on-month balances was primarily driven by increases in the price of BTC, ETH, FTM and OP.

Below are the top 5 balances, they make up more than 80% of total holdings

Subsequent Events

At the time of writing there has been a decrease due to the changes in asset prices:

  • Fantom is at $1.89m, a decrease of 11%
  • Optimism is at $709k, a decrease of 25%
  • Ethereum is at $76k, a decrease of 13%

You can follow the treasury balances here:

Protocol TVL

The graphic below shows how the TVL is allocated on the two networks. Bulk of the Optimism TVL is located in interest bearing pools which generate additional revenue for both liquidity providers and the protocol.

Once these new pools are available on Fantom, focus will shift to concentrating liquidity in that area

Subsequent Events

At the time of writing protocol TVL has decreased due to the changes in asset prices

  • Fantom TVL is $40m, a decrease of 14%
  • Optimism TVL is $17m, a decrease of 17%

Closing

Thank you for going through the October performance with us

While November has seen unprecedented events we just want to say how we appreciate everyone that is part of our community. The “Social Science Lab” and the “Lotus Room” are at your disposal.

Until next month,

Thank you

Not Financial Advice

Investors should remember that the value of $BEETS, $fBEETS and the income from them, can go down as well as up and that past performance is not a guarantee of future returns. You may not recover what you invest.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store